As a modelling package it's pretty basic, but for actually learning to model it's great. The vertex, polygon and UV system takes a bit of getting your head around, and there's no point trying to make complex models until you understand it.
Personally I think that the 'sister' products CharacterFX and Unwrap3D (not by Mete) are better, and these days it's better to use seperate packages, so your mesh can come from anywhere or anything. I use Rhino3D primarily, a NURBS package, but really it's a case of getting a good workflow going, not picking the most popular or cheapest modelling package.
Blender takes a lot of learning, I'd actually save up and buy a better package instead of learning that. I'd get Softimage or something for free, or spend a few hundred bucks - for serious modelling Milkshape is a bit too old, a bit too Half-Life 1. Fine for smaller modelling jobs and low poly stuff, but I wouldn't expect it to cope with high poly work, or stuff that really needs edgeloops etc to avoid looking crud.
Health, Ammo, and bacon and eggs!
